If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc) / (b + d)
Indicate whether the statement is true or false
TRUE
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Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment
What will be an ideal response?
The higher is the tax on productive activity, the more likely that people will attempt to evade those taxes by diverting their economic activity from the formal, reported economy to an underground, "off-the-books" economy
Indicate whether the statement is true or false
Transfer payments are ________.
A. excluded when calculating GDP, because they do not reflect current production B. excluded when calculating GDP, because they only reflect inflation C. included when calculating GDP, because they are a category of investment spending D. included when calculating GDP, because they increase the spending of recipients
A bank currently has checkable deposits of $100,000, total reserves of $30,000, and loans of $70,000. If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:
A. $10,000. B. $15,000. C. $75,000. D. $5,000.